Audit Regulations (Amendment)

Overview

Statutory Rules 1981 No. 3481, titled "Audit Regulations (Amendment)" under the Audit Act 1901, was enacted to amend the existing Audit Regulations in relation to public authorities in the Australian Capital Territory. This legislative instrument was made by the Governor-General of the Commonwealth of Australia, acting on the advice of the Federal Executive Council. The purpose of this amendment is to clarify the application of certain Divisions of Part XI of the Audit Act 1901 to specific public authorities within the Australian Capital Territory, thereby ensuring consistent and appropriate auditing practices across these entities. The policy objective, as indicated, is to provide a clear framework for the audit of public authorities within the Territory, ensuring that the regulations are effectively applied to the relevant authorities.

Scope and Application

The Audit Regulations 1981, amended in 1981, apply to specific authorities within the Australian Capital Territory (A.C.T.) and dictate the application of Divisions 2 and 3 of Part XI of the Audit Act 1901 to these entities. The regulations pertain to bodies corporate established for public purposes through an Ordinance of the Territory or regulations made under such an Ordinance. By specifying certain authorities and the applicable Divisions, the regulations ensure that these public authorities adhere to the relevant audit requirements. The regulations also include modifications to Division 3 of Part XI of the Audit Act 1901 for the Australian Capital Territory Schools Authority, such as changes to the approval process and the inclusion of specific reports and financial statements. This legislative instrument thus narrows the scope of the Audit Act to particular public authorities within the A.C.T., subject to the outlined modifications and exclusions.

Key Provisions

The main operative sections of these Audit Regulations (Amendment) are Regulation 2a and Schedule 1, which together specify how Divisions 2 and 3 of Part XI of the Audit Act 1901 apply to public authorities in the Australian Capital Territory (ACT). Regulation 2a defines key terms such as "authority", "Division", and "Territory" and specifies that the authorities listed in column 2 of Schedule 1 are subject to the Divisions listed in column 3, subject to any modifications in column 4 (2a(2)-(4)). Schedule 1 lists specific ACT public authorities and the relevant Divisions of the Act that apply to them, along with any modifications (Schedule 1). These Regulations impose obligations on the specified ACT public authorities to comply with the relevant Divisions of the Audit Act 1901, with any modifications set out in Schedule 1. For example, the Australian Capital Territory Schools Authority must comply with Division III of Part XI, with the modifications specified in Part III of Schedule 1 (Schedule 1, Part 1, item 2; Part 3). This includes submitting financial reports to the appropriate Minister and the Australian Capital Territory House of Assembly (Schedule 1, Part 3, items 3-4). The Regulations also prescribe the Minister in relation to each authority for the purposes of the Audit Act 1901 (2a(4)). Breaches of these Regulations may have legal consequences. Although the Regulations themselves do not specify penalties for non-compliance, the Audit Act 1901 provides for offences and penalties for failure to comply with an audit direction or to provide information or documents as required by the Act. Under section 64 of the Audit Act, a person who contravenes a direction given under the Act is guilty of an offence and may be subject to a penalty of up to five penalty units (approximately AUD 1,100) for each contravention. Furthermore, under section 65, a person who fails to provide information or documents as required by the Act is guilty of an offence and may be subject to a penalty of up to two penalty units (approximately AUD 440) for each failure.